SECRET
last year's strikes and stoppages. An increase in this
activity is to be expected; three trade uniona have recently
announced that strike pay to their members is to be terminated.
In these circumstances the local Communist leadership is finding
difficulty in controlling its more militant supporters.
4. There was a disorderly assembly in Shamshuipo on 12 June
involving about 400 persons which had to be dispersed by police
using tear smoke.
US Naval Visits
5.
Following the Chinese note of protest about U.2. naval
visits on 27 May, local reaction has been in a low key
indicating that the protest may have been no more than a formal
propaganda exercise. A draft reply to the Note is being
prepared.
6. we are reviewing the basis on which such visits take place
in consultation with the Governor and Sir D. Hopson in Peking
with special reference to visits by nuclear-powered ships (it
was a visit by the nuclear-povered carrier "Enterprise" that triggred
off the protest).
Long Term Study
7. Kr. Kason, Under Secretary, leaves for Hong Kong today. The
main purpose of his visit is to consult the Governor on the Long
Ters Study. He takes with him a draft revised to take account of
the Governor's views,
Hong Kong Department 14 June, 1968.
35CREW
Copies to :---
Sir A. Galsworthy Er. Gaminara File
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